The approval came back. It is conditional. And somewhere in the conditions is a line asking you to document money you were planning to spend on furniture.
Nobody mentioned reserves. They almost never do, because reserves are not a selling point.
Under CMG Financial's MedPro Premier guidelines (NMLS #1820, revised 09/11/2026), reserves are arithmetic. Here is the whole picture, so you can do the arithmetic before you make an offer instead of after.
The base table
At 95% loan-to-value or below:
- $100,000 to $1,500,000: zero months
- $1,500,001 to $2,000,000: three months
Above 95% loan-to-value:
- $100,000 to $1,500,000: three months
- $1,500,001 to $2,000,000: six months
Reserves are measured in months of the full housing payment: principal, interest, taxes, insurance and assessments.
Look at the top left cell again. At 95% leverage under $1,500,000, the requirement is zero. Cross into 100% financing and three months appear. So the down payment you saved by going to 100% partly comes back as cash you have to document and not spend.
That is worth putting on paper next to the ratio difference, because the same move also drops your debt-to-income ceiling from 50% to 45%.
Add a month for every month you close early
If you are qualifying on projected income from a contract that has not started, you must document reserves covering the full housing payment for each month between the note date and the employment start date, in addition to the minimum. Partial months round up.
The guidelines give the example: note date 7/1/2026, start date 9/15/2026, three months required.
Stack it. That physician at 100% leverage under $1,500,000 needs three months minimum plus three months gap. Six months of housing payment, liquid, documented.
Add three months for every other financed property
You may own a total of four financed one-to-four unit residential properties including the subject.
If you own up to four, maximum financing is allowed on the subject transaction, and each additional financed one-to-four unit residential property requires three months of reserves.
This is the requirement physicians forget, and the reason is always the same: the condo from residency that you kept and rented out. It is a financed property. It costs you three months of reserves on the new file, and if you have two of them, six.
Counting those before you shop changes the price range you should be looking in.
What counts as reserves
Gift funds are eligible for reserves. Gifts from eligible donors may be used to meet 100% of down payment, closing costs and prepaids, and reserve requirements, with no minimum contribution from your own funds.
Two limits worth remembering: gift funds may not be used to pay off debt, and gifts from relatives who are interested parties to the transaction are not allowed unless the gift is a gift of equity.
Asset documentation follows the Fannie Mae Selling Guide, and the statement periods are specific:
- Purchase transactions: the most recent full two month period of account activity, so 60 days, or the most recent quarter if the account reports quarterly.
- Refinance transactions: the most recent full one month period, so 30 days, or the most recent quarter for quarterly accounts.
Business funds are not allowed for income calculation. If you have a professional corporation, keep that money separate in your planning.
Two liability rules that eat into assets
These are easy to miss and they hit the asset side rather than the income side.
Open-end and net thirty day accounts. If the credit report reflects an open-end or net 30 day account, the balance owing must be subtracted from liquid assets. A charge card you pay in full every month does not affect your ratio and does reduce your documented assets by its balance.
Revolving accounts. The monthly payment on revolving accounts with a balance must be included in your debt-to-income ratio regardless of how many months remain. If the report shows no payment and the actual payment cannot be determined, a minimum payment may be calculated using the greater of $10 or 5% of the balance.
That 5% calculation is brutal on a card carrying a large balance you intended to pay off next month. Pay it off before the credit report, not after.
Worked sequence
Say you are targeting a purchase at 100% leverage under $1,500,000, closing 90 days before your start date, and you kept your residency condo.
- Base reserves above 95% under $1,500,000: 3 months
- Gap reserves, three months early: 3 months
- One additional financed property: 3 months
Nine months of full housing payment, documented and liquid, before you spend a dollar on the move.
Now run the same file at 95% leverage: base drops to zero, gap stays at three, property stays at three. Six months. Same house, three months less cash, and five more points of debt-to-income ceiling.
That is the entire argument for not reflexively taking the zero down option, and it takes ten minutes to run.
What to do with this
- Pick your leverage tier after you calculate reserves, not before.
- Count every financed property you own, including the one you rent out.
- If you are closing early, count the gap months from a realistic closing date.
- If family is helping, structure it as a documented gift that can cover reserves.
- Pay revolving balances before the credit report is pulled.
Common questions
How many months of reserves does a physician loan require? Zero months at 95% loan-to-value or below up to $1,500,000, three months above 95% up to $1,500,000, three months at or below 95% from $1,500,001 to $2,000,000, and six months above 95% in that same loan range.
Do reserves increase if I close before starting the job? Yes. You must document one month of full housing payment for each month between the note date and your start date, rounded up, on top of the program minimum.
Does the condo I rent out affect my reserves? Yes. Each additional financed one-to-four unit property requires three months of reserves, and you may own four financed properties in total including the one you are buying.
Can gift funds be used for reserves? Yes. Gifts from eligible donors can cover 100% of down payment, closing costs and reserves with no minimum contribution from your own funds. They cannot be used to pay off debt.
How many bank statements do I need to provide? Two months, or 60 days, on a purchase. One month, or 30 days, on a refinance. Quarterly-reporting accounts use the most recent quarter.
Related reading
- Physician and medical professional home loans, the full index for this topic
- Buying Before Your Start Date: The Contract and Reserve Rules for Physicians
- Physician Loan Down Payment: What 0%, 5% and 10% Actually Cost You
- Physician Loan or Conventional: Which One Is Actually Cheaper on Your File
Why bring this file to us
- We give you the reserve number up front. It is arithmetic, not judgment, and finding it out in underwriting is the expensive way.
- We count every financed property. Each one you keep adds three months, and physicians who kept a residency condo routinely forget it.
- We structure gifts to cover reserves properly, which is allowed here and frequently the cleanest fix.
- Broker model. Multiple investors rather than one bank's shelf, which is what a file like this needs when the first answer is no.
- You talk to the principal. Ricky Khamis is President of EPiQ Lending and a Certified Mortgage Planner, NMLS #173141, originating mortgages since 1999. Direct line: (480) 999-9842.
EPiQ Lending is NMLS #1936984, at 7975 N. Hayden Road, Suite A-101 in Scottsdale. Verify all of it before you trust any of it: Ricky's EPiQ Lending profile, the Scottsdale branch, and the license itself at NMLS Consumer Access. Hold every lender to that standard, including us.
Tell me your target price, your leverage and your start date and I will give you the exact reserve number before you write an offer.
Program figures in this post come from the CMG Financial (NMLS #1820) guideline set named above, as published on the revision date given. CMG Financial is the parent company of EPiQ Lending. These figures describe one investor's program at one point in time. Other investors price and underwrite the same borrower differently, guidelines change without notice, and nothing here is an offer of any specific program or terms. Confirm current eligibility on your own file before you plan around any of it.
Equal Housing Opportunity. This is general information, not a commitment to lend or an offer to extend credit. Rates, terms, and program guidelines change and depend on credit approval, property appraisal, income and asset verification, and other qualifying factors. Not all applicants will qualify. Non-QM, asset-based and business purpose financing carry different pricing, terms and consumer protections than agency financing. Consult your tax advisor regarding the tax treatment of any income or distribution strategy.
Find out what you qualify for before you start looking
Tell me where you are in training or practice and I will tell you which structure fits your file, what it needs, and what it does not. No credit pull to have the conversation.
